imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

Beware of Falling Bankers!

by freeman Tuesday, Sep. 04, 2007 at 9:06 AM
mbatko@lycos.com

Like the car, our sacred cow that is not discussed, speculation and prosperity based on credit are taboo subjects. The system is corrupt and its answers wrong. Will we mend our own pockets as China closes its wallet? Critical thinking, culture shock, alternative economic and Jesus' parables can be new beginnings.

BEWARE OF FALLING BANKERS!

By freeman

[This blog published in August 2007 is translated from the German on the World Wide Web, http://alles-schallundrauch.blogspot.com/2007/08/vorsicht-fliegende-banker.html.]




For a long time I predicted the financial crisis coming from America. The collapse of the bridge in Minnesota, the explosion of the steam conduit in New York and so forth are the visible signs of a collapsing system. 25% of all the 590,750 bridges in the US are described as “structurally endangered” by the American Society of Civil Engineers (ASCB). To rehabilitate them, “9.4 billion per year for the next 20 years is needed.” How can that happen if presidents are “elected” who spend money only for war and not on maintaining the infrastructure?!

The American financial system is as dead beat as the bridges and power system of the country. Now the whole world is affected. This is the great disadvantage of globalization because everything is interwoven and connected. A crash in the US triggers a worldwide chain reaction. Around the globe, the central banks have pumped billions into the banking system to calm alarmed investors. The worldwide fear of an intensified credit crisis induced the European Central Bank, the US Federal Reserve and the currency guardians in Tokyo and Sydney to more liquidity injections. Nevertheless the central banks could not soothe investors on the stock markets. Prices fell dramatically in Europe and Asia. Wall Street has also recorded massive losses.

The European Central Bank has made available the record sum of 95 billion euro to be supplemented with another 61 billion euro. This was the first time since the crisis after the attacks of September 11 that the custodians of the euro have taken such drastic steps.

The US Federal Reserve pumped around billion into the market on a single day. The Canadian central bank also infused more money than usual in the markets. “What the central banks are doing is a concerted attempt to supply sufficient liquidity,” said Jimmy Koh, currency strategist at the United Overseas Bank. “What is alarming is that they are doing this when the currency markets are not functioning as they should.”

On Friday, the central banks of Japan and Australia pumped more money into the market (.45 billion and .2 billion respectively) than in the past. On account of the crisis, the central banks in several Asian countries were forced to intervene in the currency market to support their currencies.

The 5 billion pumped into the system on one day were not peanuts. This shows the precariousness of the situation.

In Germany, the situation is also terrible. The German Bundesbank holds one crisis meeting after another to prevent the collapse of the IKB and other banks. According to rumors, the West German regional bank and the Saxony regional bank have great problems. If these big banks collapse, the whole global financial system will break down.

Asset Backed Commercial Papers threaten the German banking system and can have a worldwide effect. This kind of financing involves dangers when the parties become bankrupt and the commercial banks must answer. Many banks have sold these ABCPs to hedge funds and other banks which theoretically could redeem these in case of emergency. The problem is that the banks accepted many more ABCPs than they needed. When a mass assault comes, the banks will be insolvent.

The case of the IKB shows what can happen. Because the US hedge fund Rhineland Funding financed by the IKB had deficient cover, the IKB had to help out. It wanted to cash its ABCPs with Deutsche bank which refused because the bank’s head Ackermann was already in a panic on account of the Bear Streams affair. Therefore the IKB collapsed. Now the central banks are trying to rescue the attacked banks with massive liquidity or tons of cheap money. “The stability of the German financial market is at stake,” the federation of German banks declared. The head of BaFin financial oversight, Jochen Sanio, warned of the most serious banking crisis since 1931 if the IKB and others collapse. Worry over the US real estate market also burdens the German stock market.

For years, the defenders of economic liberalism stylized the booming US economy as a good example and criticized German sluggishness. The “economic miracle” and the greatly praised “American way of life” are illusions, pipe dreams, castles in the sky, empty balloons that are now bursting. This consumption bubble was only financed with debts, many from foreigners. Credits were given to socially weak and poor Americans who under normal circumstances would never have received money. People bought expensive consumer articles that otherwise they never would have sought.

The growth of the economy and the consumer frenzy which the US government always praised was built on credit. Real estate credits and credits for cars, boats, motor-homes and even credit card debts were given to subprime customers with trifling creditworthiness that they could hardly repay. American banks bundled these credits and passed them on to investors who bought the loans in the form of complex packages on the capital market. The IKB and other stupid foreigners bought the shares without ever seeing the debtors and demanding securities from them.

Now when US citizens can no longer pay on account of low home prices, job losses and higher interests, the system collapses and the creditors have nothing solid in their hands. To the money-greedy financiers, it is only an air bubble. The great panic is beginning.

We may soon see flying bankers if the problems continue and all this becomes reality.

The French financial paper La Chronique Agora says: “This time the alarm on the credit markets is on an unprecedented scale. This is an end of an epoch, the end of the illusion of unlimited worldwide liquidity. An illusion dies that the central banks and finance ministries have complete control over the volumes of money and credit piled up over the years.

The situation is that of a giant (the American economy) on shaky foundations balanced on a gigantic balloon, the real estate bubble. The credit- and derivative market needing continuous infusions of new money from the Federal Reserve relies on the giant. The world finance markets that have a fear of heights stand at the very top above this dangerous creation.

Investors still sitting on their chairs are the spectators of this monstrous spectacle. But they seem ready to immediately stand up and leave the hall, run to the emergency exit quietly and disciplined or in a panic overturn the chairs and climb over their neighbors in the escape…”



Report this post as:

Local News

GUIDE TO REBEL CITY LOS ANGELES AVAILABLE A12 5:39PM

lausd whistle blower A10 11:58PM

Website Upgrade A10 3:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 1:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 11:58AM

Change Links April 2018 A01 11:27AM

Nuclear Shutdown News March 2018 M31 6:57PM

Join The Protest Rally in Glendale on April 10, 2018! M29 7:00PM

Join The Protest Rally in Glendale on April 10, 2018! M29 6:38PM

Spring 2018 National Immigrant Solidarity Network News Alert! M19 2:02PM

Anti-Eviction Mapping Project Shows Shocking Eviction Trends in L.A. M16 5:40PM

Steve Mnuchin video at UCLA released M15 12:34AM

Actress and Philanthropist Tanna Frederick Hosts Project Save Our Surf Beach Clean Ups M06 12:10PM

After Being Told He's 'Full of Sh*t' at School Event, Mnuchin Demands UCLA Suppress Video M02 11:44AM

Resolution of the Rent Strike in Boyle Heights M01 6:28PM

What Big Brother Knows About You and What You Can Do About It M01 3:30PM

Step Up As LAPD Chief Charlie Beck Steps Down F14 2:44PM

Our House Grief Support Center Hosts 9th Annual Run For Hope, April 29 F13 12:51PM

Don’t let this LA County Probation Department overhaul proposal sit on the shelf F13 11:04AM

Echo Park Residents Sue LA Over Controversial Development F12 8:51AM

Former Signal Hill police officer pleads guilty in road-rage incident in Irvine F09 10:25PM

Calif. Police Accused of 'Collusion' With Neo-Nazis After Release of Court Documents F09 7:14PM

Center for the Study of Political Graphics exhibit on Police Abuse posters F07 9:50AM

City Agrees to Settle Lawsuit Claiming Pasadena Police Officer Had His Sister Falsely Arre F04 3:17PM

Professor's Study Highlights Health Risks of Urban Oil Drilling F04 12:42PM

Claims paid involving Pasadena Police Department 2014 to present F04 10:52AM

Pasadenans - get your license plate reader records from police F03 11:11PM

LA Times Homicide Report F03 1:57PM

More Local News...

Other/Breaking News

What does the Quran Say About Islamic Dress?? A21 4:15PM

Biodiversité ou la nature privatisée A20 11:22AM

The Market is a Universal Totalitarian Religion A20 7:14AM

Book Available about Hispanics and US Civil War by National Park Service A19 5:52PM

The Shortwave Report 04/20/18 Listen Globally! A19 4:01PM

The Republican 'Prolife' Party Is the Party of War, Execution, and Bear Cub Murder A19 11:48AM

Neurogenèse involutive A18 9:21AM

Paraphysique de la dictature étatique A16 10:13AM

Book Review: "The New Bonapartists" A16 3:45AM

The West Must Take the First Steps to Russia A14 12:25PM

Théorie générale de la révolution ou hommage à feu Mikhaïl Bakounine A14 3:30AM

The Shortwave Report 04/13/18 Listen Globally! A12 3:50PM

“Lost in a Dream” Singing Competition Winner to Be Chosen on April 15 for ,000 Prize! A12 3:48PM

The World Dependent on Central Banks A12 4:43AM

Ohio Governor Race: Dennis Kucinich & Richard Cordray Run Against Mike DeWine A11 9:40PM

March 2018 Honduras Coup Again Update A10 10:52PM

Apologie du zadisme insurrectionnel A10 3:33PM

ICE contract with license plate reader company A10 1:14PM

Palimpseste sisyphéen A09 11:23PM

Black Portraiture(S) IV: The Color of Silence...Cuba No...Cambridge Yes A09 5:32AM

Prohibiting Micro-Second Betting on the Exchanges A09 4:18AM

Prosecutors treat Muslims harsher than non-Muslims for the same crimes A08 10:33PM

Amy Goodman interview on cell phone safety A08 10:29PM

Mesa, Arizona police officer kills unarmed white man A08 9:50PM

Israeli leaders should be prosecuted for war crimes A08 9:48PM

Paraphysique de l'autorité A08 12:11AM

Two Podcasts on fbi corruption A06 10:13PM

Fbi assassins assault & try to kill DAVID ATKINS A06 7:29PM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy